Excel formula for calculating NZ tax paid on annual income.

gistfile1.txt

=IF(B2<=14000,SUM(B2*10.5%),IF(B2<=48000,SUM(B2-14000)*17.5%+1470,IF(B2<=70000,SUM(B2-48000)*30%+7420,IF(B2>=70001,SUM(B2-70000)*33%+14020))))

Hi guys, thanks for this.

I found that the correct formula to calculate the edge case of exactly $14,000 etc needs to be as follows;

=SUMPRODUCT(--(A1>={0;14000;48000;70000;180000}),(A1-{0;14000;48000;70000;180000}),{0.105;0.07;0.125;0.03;0.06})

Thanks @LightspeedNZ, I've got an update for FY25 which tests out pretty well against IRD website based on:

From	To	Rate
0	$14,000.00	10.50%
$14,001.00	$15,600.00	12.82%
$15,601.00	$48,000.00	17.50%
$48,001.00	$53,500.00	21.64%
$53,501.00	$70,000.00	30.00%
$70,001.00	$78,100.00	30.99%
$78,101.00	$180,000.00	33.00%
$180,001 and over		39.00%

=SUMPRODUCT(--(A1>={0;14000;15600;48000;53500;70000;78100;180000}),(A1-{0;14000;15600;48000;53500;70000;78100;180000}),{0.105;0.0232;0.0468;0.0414;0.0836;0.0099;0.0201;0.06})

From 1st April 2025 with the following tax rates:

From	To	Rate
0	$15,600.00	10.50%
$15,601.00	$53,500.00	17.50%
$53,501.00	$78,100.00	30.00%
$78,101.00	$180,000.00	33.00%
$180,001 and over		39.00%

Gives the following formula (untested):

=SUMPRODUCT(--(A1>={0;15600;53500;78100;180000}),(A1-{0;15600;53500;78100;180000}),{0.105;0.07;0.125;0.03;0.06})

Here's a slightly simpler version to prevent the problem mentioned by @LightspeedNZ:

=SUMPRODUCT((A1>{1;14000;48000;70000;180000})*(A1-{0;14000;48000;70000;180000}),{0.105;0.07;0.125;0.03;0.06})

Lambda limits you to one cell reference, which is a time saver:
=LAMBDA(x,SUMPRODUCT((x>{1;14000;48000;70000;180000})*(x-{0;14000;48000;70000;180000}),{0.105;0.07;0.125;0.03;0.06}))(A1)

Just to add that most PAYE calculators online are incorrectly using the formula for 1st April 2025 already. If you are calculating PAYE or total tax you may need to include the ACC Earners Levy of $2,276.53 pa.